Bloomin' Brands Shares Plunge 11.48% as Earnings Signal Rising Costs, Margin Contraction

The share price fell to its lowest level since August 2025 today, with an intraday decline of 11.48%.

Bloomin’ Brands’ Q3 2025 results revealed a mixed performance, marked by a 10.6% year-over-year revenue drop to $928.8 million, though earnings narrowly beat expectations. Adjusted EPS came in at a $0.03 loss, surpassing forecasts by 76%, but adjusted EBITDA of $8.53 million missed estimates by 82%, signaling operational strain. Operating margins contracted to -3.9% from 1.7% in the prior year, driven by rising costs in commodities, labor, and insurance. Same-store sales rose 1.2% year-over-year, a modest recovery from a 1.5% decline in Q3 2024, yet growth remains stagnant over two years.

The company accelerated its turnaround strategy, closing 21 U.S. restaurants and opting not to renew 22 leases, with $33.2 million in impairment charges booked in Q3. CEO Mike Spanos emphasized portfolio optimization and asset renewal to reduce fixed costs. Despite raising full-year 2025 adjusted EPS guidance to $1.13, management projected flat to 0.5% U.S. same-store sales growth for the year, underscoring ongoing challenges. The stock initially rose 3.3% post-earnings but has fallen 57% over the past 12 months, reflecting skepticism about long-term growth. Analysts maintain a “hold” consensus, with a median price target of $7.63, as inflationary pressures and margin compression persist amid limited expansion opportunities.